You can be sure as a market changes, tightens or fluctuates, many people will come up with innovative and sometimes exotic ways of attracting buyers, from carrying back to offering a discount form the selling price. According to Calculated Risk who found in the Daytona Beach News advertising section: "How about 30% off the list price? And a free washer, dryer and refrigerator? Realtors Warmly Welcomed." Or: "A few more: Eagle Homes ad reads "no money down" and "no mortgage payments for 6 months". ICI Homes advertises "Up to $50,000 Off" and, as a "special thank you ICI Homes will pay your closing costs"." We will eventually see more and more of that. But I wonder how smart this is in the end.
The problem is some sellers still want too much when the consensus of the buyers say it is still too much! At least that is what I hear. It is hard to justify a price when someone tells you that and you shrug it off thinking the right buyer will come along. But what if he or she does not? Will displaying "reduced price" or "30% off" give a positive message? Will it not attract bargain sharks who will see this as an opportunity to bargain even more? Again, pricing your home right not only sells your home in less time but also fetches more.
Take into consideration, people who ask too much have their homes sit too long on the market, gather up a negative image, have to reduce the price and eventually sell for lower than what we recommended in the beginning. However, the last two multiple offers we received on two properties eventually sold for higher than the asking price. All of this because the sellers went in under the average asking price and finally got more.
You do the math.
